The cryptocurrency industry is undergoing a period of profound change, driven by the mutual integration of centralized (CEX) and decentralized (DEX) exchanges. This was stated by Emily Bao, head of the spot division at Bybit, founder of Byreal, and a key consultant at Mantle, who shared her vision of the comprehensive transformation of the industry.
This is reported by Business • Media
Blurring the Lines Between CEX and DEX
Bao believes that there is a natural convergence occurring today between centralized and decentralized platforms. She emphasized that the blurring of boundaries opens new opportunities for innovation, allowing users to combine the advantages of both types of platforms. CEXs remain key market players, providing the deepest liquidity and broad access to active users, while DEXs are associated with transparency and open-source code, which are the foundation of blockchain technology.
“Centralized exchanges (CEX) remain the cornerstone of the crypto industry, controlling the lion’s share of active users and providing the deepest and most reliable liquidity in the market. However, perception matters. CEXs operate within a private infrastructure, while decentralized exchanges (DEX) are seen as the embodiment of transparency and the open-source principle that has defined blockchain technology from the beginning.”
Innovation and New Opportunities for Users
According to Emily Bao, the current stage of market development is characterized by unique opportunities for implementing innovative solutions. She emphasized that users can already access DeFi projects and protocols directly through CEXs, as well as utilize CeDeFi products on decentralized platforms. This provides flexibility and expands opportunities for traders and institutional investors.
“I believe we have many opportunities right now, and we are seeing convergence between CEX and DEX. You can access DeFi projects and protocols through a centralized exchange, as well as use CeDeFi products similar to DeFi protocols and projects,” she said.
Bybit, which is the second-largest cryptocurrency exchange in the world by trading volume, brings together over 70 million users in its global community. Since its founding in 2018, the company has aimed to change the approach to transparency in a decentralized environment and create a simpler, more transparent, and inclusive ecosystem for all industry participants.